While money may not directly buy happiness, research indicates that financial stability can greatly enhance well-being in retirement.
The Challenger Retirement Happiness Index* shows that more than seven in ten Australians aged 60+ believe a guaranteed income in retirement would significantly boost happiness, with more than 40 per cent strongly agreeing. Yet when surveyed on their current state of happiness, financial stability sat at a score of 56 out of 100 overall, bringing it behind only physical health (62%) as the areas with the most potential for improvement in enhancing overall well-being.
For older Australians, financial stability is a key factor in achieving happiness during retirement. According to the survey, 65 percent of Australians aged 60 and over reported that they would be significantly happier if they didn’t have to worry about their finances.
Financial stability provides retirees with peace of mind, allowing them to enjoy their golden years without the stress of financial insecurity. Financial advisers play a crucial role in this, helping clients plan and manage their finances to ensure a secure and contented retirement.
Rising living costs and economic uncertainties.
Given the current economic climate and rising costs of living, it’s notable but not surprising that so many of those Australians aged over 60+ are seeking financial stability—and that there is a gap between where their sense of security currently stands and where they’d like it to be. Two in three (65%) expressed the pressure of rising costs of living is impacting their confidence in having sufficient retirement funds. For the Australians aged over 60s+ looking ahead to imminent retirement, the impact was even more significant than on those who are already retired.
Australians without financial advice feel the pinch more acutely, with a notable percentage attributing significant stress to the rising cost of living. Respondents who had never received professional financial advice (40%) were more likely than those that received advice (26%) to report that the rising cost of living has had a significant impact on their confidence that they will have enough money for retirement.
The Value of Choice
At q4 financial, we understand that each client’s needs and aspirations are unique, which is why our approach is centred on providing strategies and solutions that give our clients choice. Whether it’s the choice to retire comfortably, work part-time, or pivot and change careers—from patient care in medicine to research, for instance—we ensure that our clients have the flexibility to live their desired lifestyle.
Regardless of their past engagement with financial advisers, the majority of retirees surveyed can see the potential benefits of understanding their choices for retirement: more than three in four (77%, or the equivalent of approximately 4.5 million Australians aged 60+) said that education about their financial options in retirement would have a positive impact on their happiness.
Peace of Mind Through Client-Centric Solutions
Financial advisers have expressed increased client satisfaction when retirees know their basic financial needs are predictably met. At q4 financial, we emphasise creating client-centric strategies that ensure our clients needs are understood and addressed. Our goal at q4 wealth is not just to help our clients achieve financial stability, but to empower them with the choices that enrich their retirement years. Whether it’s through robust financial planning, strategic investments, or continuous education about retirement options, we are committed to supporting our clients in every step of their journey toward a fulfilling and worry-free retirement.
References:
* Survey & Reference: In collaboration with independent research house YouGov, Australia’s retirement income provider, Challenger surveyed over 1,000 Australians aged 60+ to understand their retirement happiness and key drivers.
* https://www.challenger.com.au/adviser/campaigns/portfolio-outcomes/the-role-of-financial-security-in-retiree-happiness
